Upstate New York Woman Sentenced for Crash Fraud Scheme

Authorities announced this week that a Utica, N.Y., woman has been sentenced for her role in an insurance and health care fraud scheme.

The U.S. Attorney’s Office for the Northern District of New York said Cynthia Morgan was sentenced by U.S. District Court Judge Norman Mordue to 27 months imprisonment and was ordered to pay restitution in an amount exceeding $1.4 million. Morgan will also serve three years of supervision following her release from incarceration.

Morgan pled guilty last August to conspiracy to commit mail and health care fraud. The U.S. Attorney’s Office said she admitted that in or about 2005 she agreed with her husband and three other men to participate in an insurance and health care fraud scheme. The scheme involved a staged motor vehicle accident on Harbor Lock Road in Utica on March 20, 2006. On that date, Morgan claimed to have been driving a Ford van which was struck by a Ryder truck. In fact, the collision was staged and Morgan was not injured.

The defendant, however, claimed to have been injured as a result of the accident and submitted false insurance claims, including claims for personal injuries, no fault benefits and disability benefits. Morgan sought medical treatment for non-existent injuries or injuries that were not related to the collision.

The bills for this medical care were submitted to and paid by a health care benefit program — specifically an insurance policy issued by Progressive Insurance Company. Morgan collected $108,000 from Mutual of Omaha under a disability policy with that company. The defendant also commenced a civil lawsuit seeking damages for personal injuries sustained in the accident. She received a payment of $30,000 to settle that suit.

Source: The U.S. Attorney’s Office for the Northern District of New York